DirecTV terminates offer to acquire EchoStar

DirecTV has terminated its offer to acquire EchoStar's satellite television business stating its failure to gain approval from Dish bondholders as a reason for termination.

The proposed $1 sale to DirecTV would have included the sale of Dish's DBS pay-TV business as well as Dish and Sling TV, and would have seen DirecTV take on around $9.75 billion of Dish's debt. Dish DBS debtholders had to agree to exchange their debt for new debt in the merged entity at a discounted rate, shaving $1.57bn on the debt, but ultimately rejected the deal.

"While we believed a combination of DirecTV and Dish would have benefitted all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV's balance sheet and our operational flexibility," said Bill Morrow, CEO of DirecTV. "DirecTV will advance our mission to aggregate, curate, and distribute content tailored to customers' interests by pursuing innovative products and providing customers with additional choice, flexibility, and control. We are well positioned for the future with a strong balance sheet and support from our long-term partner TPG."